‘Will earn Rs 1500-2000 crore tax revenue’
Srinagar, May 18: The government will introduce the Goods and Services Tax (GST) bill in next 30 days in state legislature to make changes” before it is implemented in the state, Finance Minister Dr Haseeb Drabu said.
“We will go into the GST regime but because we have a special constitutional position, we will try and make some changes,” Drabu told the KNS on the sidelines of the 14th meeting of the GST council here at the SKICC.
He said J&K draws power to tax from section 5 of its constitution whereas all other states of India draw their powers from Article 246 of constitution of India.
“So some changes have to be made. We will try and introduce the GST bill in coming 30 days in the state legislature. Only after it is passed by the state legislature, shall we enact it,” he said, adding J&K was mulling to bring real estate under the GST.
The GST council meet is being attended by Union Finance Minister, Arun Jaitely and finance ministers, finance secretaries and other taxation officials from the states and union territories.
Drabu said the common people would have many benefits of the GST because it would decrease the cascading effect of taxes. “And importing states like J&K will have huge benefit. As per our estimate, we will have Rs 1500 to 2000 crore profit in tax revenue. Prices will go down for common people in coming three years,” he said.
The Finance Minister said the GST is perhaps India’s largest and most significant tax reform. “It is change in tax regime itself. And today to my mind this is the most important meeting because there is lot of public interest in it, like what taxes you have on salt, on cigarettes, on ships, so it affects the general public. So it is a very important meeting and perhaps it is towards the concluding part of the GST council,” he said.
Jaitley complimented Drabu and the state government for making outstanding arrangements for the final leg of the GST Council before the law is rolled out on July 1 this year.
He assured the J&K Government that the Center will extend all possible help in restructuring the GST implementation for Jammu and Kashmir while respecting the special status of the state.
The meeting will last for two days, in which the delegates will decide the tax bands for various commodities under the country’s first, major indirect tax reform. (KNS)